Oil prices rose nearly 1 percent on Thursday, after having fallen over 2 percent to hit their lowest since mid-July in the previous session on concerns over waning demand in the U.S. and China.
Benchmark crude futures rose about 1 percent to $80.27 a barrel, while WTI crude futures were up 0.9 percent at $76.01.
Oil prices were rising despite new data indicating deflationary pressures in China, the world's biggest crude oil importer.
Official data showed earlier in the day that China's consumer price inflation fell 0.2 percent year-on-year in October while factory-gate prices declined 2.6 percent, falling for a 13th month in a row and raising concerns over domestic demand.
The U.S. Energy Information Administration (EIA) said earlier this week that crude production in the U.S. will rise by slightly less than previously expected but demand will fall.
The dollar struggled for direction in European trade following hawkish comments from Fed officials and an uneventful speech from Chair Jerome Powell, who will appear again on a panel discussing monetary policy challenges later today.
